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But exclusive dealing also can be anticompetitive in some circumstances. For example, exclusive dealing may allow one manufacturer, in effect, to monopolize efficient distribution services and thereby prevent its rivals from competing effectively.
Differences between agency and distribution An agent is appointed to negotiate or conclude contracts on the suppliers behalf. A distributor effectively becomes the supplier and contracts are made directly between the distributor and the customer.
Signing a distribution agreement with a local distributor in the United States of America is one of the most common ways for foreign companies to enter the American market. It is also a great way to test whether a product can be marketed in the United States, without taking too many risks.
What is a Distribution Agreement? Distribution agreements, also called wholesale distribution agreements, are contracts between a distributor and manufacturer. They allow the distributor to sell, market, and profit from the sales of a manufacturers or wholesalers product in bulk.
A reseller is generally less closely associated with the manufacturer, and sometimes does not have a direct relationship with the manufacturer as it generally buys products from distributors. Resellers usually do not keep inventory of product or provide after-sale services.

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As discussed in the Fact Sheets on Dealings in the Supply Chain, exclusive contracts between manufacturers and suppliers, or between manufacturers and dealers, are generally lawful because they improve competition among the brands of different manufacturers (interbrand competition).
Differences between agency and distribution An agent is appointed to negotiate or conclude contracts on the suppliers behalf. A distributor effectively becomes the supplier and contracts are made directly between the distributor and the customer.
A distribution agreement, also known as a distributor agreement, is a contract between a supplying company with products to sell and another company that markets and sells the products. The distributor agrees to buy products from the supplier company and sell them to clients within certain geographical areas.
An exclusive distribution contract means only one distributor is appointed in a specific marketplace by a supplier. As part of the agreement, the supplier promises not to allow the distribution of the products by any other party in the given market area.
Six Rules for Negotiating a Better Distribution Agreement Balance. Balance in a distribution agreement ensures that neither party holds unfair power over the other. Due Diligence. Annual Termination and Semiautomatic Renewal. Comparison with Proven Industry Agreements. Four Eyes versus Two Eyes. Cause and Convenience.

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